Achieving SOC 2 Certification
SOC 2 certification is a widely recognized standard for ensuring the security and confidentiality of sensitive information in cloud-based systems. The certification is granted by the American Institute of Certified Public Accountants (AICPA) and is based on the AICPA’s Service Organization Control (SOC) framework. For software companies, SOC 2 certification is critical as it demonstrates their commitment to safeguarding sensitive customer data, and it is a requirement for many regulated organizations. This guide will provide a step-by-step approach to achieving SOC 2 certification and explain why it is important for software companies to maintain it.
Why is SOC 2 Certification Important for Software Companies?
SOC 2 certification is important for software companies because it demonstrates that they have robust controls in place to protect sensitive customer data, such as personal information and financial information. It assures customers that the company is taking appropriate measures to safeguard their data and that they can trust the company with their sensitive information. SOC 2 certification can also help a company to differentiate itself from its competitors and can be used to win new business.
Moreover, SOC 2 certification is a requirement for many organizations which are heavily regulated such as financial institutions, healthcare, and government agencies. Maintaining SOC 2 certification can be seen as a sign of maturity, reliability, and trustworthiness for a software company and can help them to win and retain business from these types of organizations.
The Advantages of Using AWS when Obtaining SOC 2 Certification
One of the main advantages of using Amazon Web Services (AWS) when obtaining SOC 2 certification is the wide range of security controls and compliance offerings that are built into the platform. AWS has a number of built-in security features, such as data encryption, access controls, and threat detection, that can help organizations meet the requirements for SOC 2 certification. Additionally, AWS has a dedicated compliance team that can provide guidance and support throughout the certification process.
The Steps to Achieving SOC 2 Certification
To obtain SOC 2 certification, organizations must first complete an audit by a qualified independent auditor. The auditor will assess the organization’s controls and processes to ensure that they meet the SOC 2 standards for security, availability, processing integrity, confidentiality, and privacy. The auditor will also review the organization’s policies, procedures, and documentation to ensure that they are in compliance with the standards.
Once the audit is complete, the organization will receive a report that summarizes the auditor’s findings. If the auditor determines that the organization’s controls and processes meet the SOC 2 standards, the organization will be granted SOC 2 certification.
Common Documents that a Software Company Would Have for SOC 2 Certification
Here are a few examples of common documents that a software company would have for SOC 2 certification:
This document outlines the company’s overall approach to information security, including the specific controls and procedures that are in place to protect sensitive data:
Information Security Policy
Introduction:
This Information Security Policy (the “Policy”) sets out the company’s commitment to protecting the confidentiality, integrity, and availability of sensitive information and systems. The Policy applies to all employees, contractors, and third-party vendors who have access to the company’s sensitive information and systems.
Purpose:
The purpose of this Policy is to ensure the protection of sensitive information and systems by establishing a set of controls and procedures to safeguard against unauthorized access, use, disclosure, disruption, modification, or destruction.
Scope:
This Policy applies to all sensitive information and systems, including but not limited to, personal information, financial information, and confidential business information.
Policy Statement:
The company is committed to protecting the confidentiality, integrity, and availability of sensitive information and systems by implementing and maintaining appropriate controls and procedures. The company will:
- Implement and maintain a risk management program to identify and assess risks to sensitive information and systems, and implement controls to mitigate those risks.
- Implement and maintain access controls to ensure that only authorized individuals have access to sensitive information and systems.
- Implement and maintain data backup and recovery procedures to ensure the availability of sensitive information and systems in the event of a disaster or other emergency.
- Implement and maintain network security controls to protect sensitive information and systems from unauthorized access and external threats.
- Implement and maintain incident response procedures to ensure that security incidents are identified, reported, and responded to in a timely and effective manner.
- Implement and maintain controls to ensure the confidentiality and integrity of sensitive information, including but not limited to, data encryption and secure transmission methods.
- Implement and maintain vendor management procedures to ensure that third-party vendors who have access to sensitive information and systems are compliant with the company’s security policies and procedures.
- Implement and maintain employee training and awareness programs to ensure that all employees, contractors, and third-party vendors are aware of the company’s security policies and procedures and their responsibilities for protecting sensitive information and systems.
- Implement and maintain ongoing monitoring and auditing procedures to ensure that the company’s security controls and procedures are effective and that any deviations are identified and addressed promptly.
Enforcement:
- Violations of this Policy may result in disciplinary action, up to and including termination of employment or contract.
This document details the steps that the company will take in the event of a security incident, such as a data breach or unauthorized access to sensitive information.
Introduction:
- Purpose of the incident response plan
- Overview of the incident response process
- Roles and responsibilities of incident response team members
Preparation:
- Incident response team structure and composition
- Communication plan
- Incident response training and exercises
- Equipment and resources
- Incident response plan maintenance and review process
Detection and Reporting:
- Methods for detecting incidents
- Procedures for reporting incidents
- Initial triage and assessment process
Containment, Analysis, and Eradication:
- Containment procedures
- Analysis process and methods
- Eradication procedures
Recovery:
- Procedures for restoring normal operations
- Data backup and recovery procedures
- Procedures for verifying the effectiveness of recovery efforts
Post-Incident Review:
- Process for conducting a post-incident review
- Criteria for evaluating the incident response process
- Process for updating the incident response plan based on lessons learned
Appendices:
- Contact information for incident response team members
- Details of specific incident response procedures
- Forms for reporting and documenting incidents
- Checklists for incident response activities.
It’s important to note that this sample document is just a starting point and may need to be adapted to fit the specific needs and requirements of your organization. The incident response plan should be regularly reviewed and tested to ensure its effectiveness and relevance.
Here’s an outline for a good risk management plan for SOC 2 compliance:
- Assessment:
- Identify and prioritize potential risks to the organization’s information systems
- Evaluate the likelihood and potential impact of each risk
- Assess the effectiveness of existing controls for mitigating each risk
- Documentation:
- Document the risk management process and procedures
- Document risk assessment results, including risk identification, prioritization, and evaluation
- Document the effectiveness of existing controls and any additional controls recommended for mitigating risks
- Implementation:
- Develop and implement a risk mitigation plan
- Implement additional controls as recommended in the risk assessment
- Continuously monitor the effectiveness of risk management controls
- Communication:
- Communicate risk management policies and procedures to all employees
- Ensure that all employees understand their role in risk management
- Provide regular training to employees on risk management policies and procedures
- Monitoring:
- Continuously monitor the risk management process to ensure its effectiveness
- Regularly review and update the risk management plan as necessary
- Document all changes to the risk management plan
- Review and Update:
- Review and update the risk management plan annually or as needed
- Ensure that the risk management plan remains aligned with the organization’s overall information security program
Here’s an outline for a good access control policy for SOC 2:
- Purpose:
- Define the purpose of the access control policy
- Explain the scope of the policy and who it applies to
- Outline the objectives of the policy
- Definitions:
- Define key terms and concepts related to access control
- Explain the different types of access controls and their purpose
- Access Control Principles:
- Explain the principle of least privilege
- Explain the principle of separation of duties
- Explain the principle of need-to-know
- Explain the principle of dual control
- User Access Management:
- Explain the process for granting access to information systems and resources
- Explain the process for revoking access when no longer needed
- Explain the process for reviewing and renewing access permissions regularly
- Password Management:
- Explain the requirements for password complexity and length
- Explain the process for changing passwords regularly
- Explain the process for securely storing passwords
- Log Management:
- Explain the requirement to log all access to information systems and resources
- Explain the process for reviewing and analyzing logs regularly
- Explain the process for retaining logs for a specified period of time
- Physical Security:
- Explain the requirement to secure physical access to information systems and resources
- Explain the process for controlling access to data centers and other secure areas
- Explain the process for ensuring the security of mobile devices and other portable equipment
- Incident Management:
- Explain the process for responding to security incidents
- Explain the process for reporting security incidents
- Explain the process for investigating security incidents
- Policy Compliance:
- Explain the requirement for all employees to comply with the access control policy
- Explain the process for monitoring and enforcing policy compliance
- Explain the consequences for non-compliance
Here’s an outline for a good data backup and recovery policy for SOC 2 compliance:
- Purpose:
- Define the purpose of the data backup and recovery policy
- Explain the scope of the policy and who it applies to
- Outline the objectives of the policy
- Definitions:
- Define key terms and concepts related to data backup and recovery
- Explain the different types of backup and recovery methods and their purpose
- Data Backup:
- Explain the requirement to regularly backup data
- Explain the process for selecting the most appropriate backup method
- Explain the process for scheduling regular backups
- Explain the process for testing and verifying backups
- Data Retention:
- Explain the requirement to retain backups for a specified period of time
- Explain the process for securely storing backups
- Explain the process for disposing of backups when no longer needed
- Data Recovery:
- Explain the process for recovering data in the event of a disaster or data loss
- Explain the requirement to test data recovery procedures regularly
- Explain the requirement to document data recovery procedures
- Incident Management:
- Explain the process for responding to data backup and recovery incidents
- Explain the process for reporting data backup and recovery incidents
- Explain the process for investigating data backup and recovery incidents
- Policy Compliance:
- Explain the requirement for all employees to comply with the data backup and recovery policy
- Explain the process for monitoring and enforcing policy compliance
- Explain the consequences for non-compliance
Here’s an outline for a good network security policy for SOC 2 compliance:
- Purpose:
- Define the purpose of the network security policy
- Explain the scope of the policy and who it applies to
- Outline the objectives of the policy
- Definitions:
- Define key terms and concepts related to network security
- Explain the different types of network security controls and their purpose
- Network Architecture:
- Explain the requirement to design the network with security in mind
- Explain the requirement to use secure network protocols and encryption technologies
- Explain the requirement to use firewalls, access controls, and other network security controls
- Access Management:
- Explain the process for granting and revoking access to the network
- Explain the requirement to use authentication and authorization controls
- Explain the requirement to use network segmentation and VLANs to control access to sensitive data
- Incident Management:
- Explain the process for responding to network security incidents
- Explain the process for reporting network security incidents
- Explain the process for investigating network security incidents
- Patch Management:
- Explain the requirement to regularly update and patch network devices and software
- Explain the process for testing and verifying patches before deployment
- Explain the process for documenting patch management activities
- Monitoring and Logging:
- Explain the requirement to regularly monitor the network for security incidents and vulnerabilities
- Explain the requirement to log network activity and store logs for a specified period of time
- Explain the process for reviewing and analyzing network logs regularly
- Policy Compliance:
- Explain the requirement for all employees to comply with the network security policy
- Explain the process for monitoring and enforcing policy compliance
- Explain the consequences for non-compliance
Here’s an outline for a good vendor management policy for SOC 2 compliance:
- Purpose:
- Define the purpose of the vendor management policy
- Explain the scope of the policy and who it applies to
- Outline the objectives of the policy
- Definitions:
- Define key terms and concepts related to vendor management
- Explain the different types of vendors and their role in the organization
- Vendor Selection:
- Explain the requirement to assess the security and privacy practices of potential vendors
- Explain the requirement to use a risk-based approach to selecting vendors
- Explain the requirement to enter into contracts with vendors that include security and privacy provisions
- Vendor Oversight:
- Explain the requirement to regularly monitor vendor performance and compliance with security and privacy standards
- Explain the process for conducting security assessments of vendors
- Explain the process for addressing security incidents or privacy breaches involving vendors
- Incident Management:
- Explain the process for responding to incidents involving vendors
- Explain the process for reporting incidents involving vendors
- Explain the process for investigating incidents involving vendors
- Termination and Transition:
- Explain the process for terminating the relationship with a vendor
- Explain the requirement to ensure that sensitive data is securely transferred or deleted when terminating a relationship with a vendor
- Explain the requirement to conduct a final security assessment of a vendor prior to termination
- Policy Compliance:
- Explain the requirement for all employees to comply with the vendor management policy
- Explain the process for monitoring and enforcing policy compliance
- Explain the consequences for non-compliance
Here’s an outline for a good SOC 2 compliance report:
- Introduction:
- Provide a brief overview of the organization and its services
- Explain the purpose of the SOC 2 report and the scope of the audit
- Outline the Trust Services Criteria (TSC) used in the audit
- Organization Overview:
- Provide a high-level description of the organization’s structure, operations, and technology environment
- Explain the role and responsibilities of key stakeholders and personnel
- Control Environment:
- Describe the control environment that supports the security and availability of the organization’s systems and data
- Explain the organization’s risk management processes and procedures
- Describe the role and responsibilities of key stakeholders in maintaining the control environment
- Information Systems:
- Describe the organization’s information systems, including network infrastructure, servers, databases, and applications
- Explain the security and availability controls in place to protect the information systems
- Describe the backup and recovery procedures and processes for the information systems
- Access Controls:
- Describe the procedures for granting, modifying, and revoking access to the information systems
- Explain the authentication and authorization controls in place
- Describe the role and responsibilities of key stakeholders in managing access controls
- Monitoring and Logging:
- Explain the organization’s monitoring and logging practices and procedures
- Describe the logs generated by the information systems and how they are used to support security and availability
- Explain the role and responsibilities of key stakeholders in monitoring and logging
- Incident Management:
- Describe the procedures for responding to security incidents and availability disruptions
- Explain the role and responsibilities of key stakeholders in incident management
- Describe the processes for reporting and documenting incidents
- Compliance with Legal and Regulatory Requirements:
- Describe the organization’s policies and procedures for complying with legal and regulatory requirements
- Explain the role and responsibilities of key stakeholders in compliance with legal and regulatory requirements
- Conclusion:
- Summarize the findings of the audit and the organization’s compliance with the Trust Services Criteria
- Provide recommendations for improvement, if applicable
- Conclude with a statement of the organization’s commitment to security and availability.
Here’s an outline for a good employee handbook for SOC 2 compliance:
- Introduction:
- Provide an overview of the organization and its mission
- Explain the purpose of the employee handbook
- Outline the key policies and procedures covered in the handbook
- Company Culture:
- Describe the values, beliefs, and attitudes that define the organization’s culture
- Explain the role of employees in promoting and maintaining the company culture
- Outline the expectations for employee behavior and conduct
- Employee Benefits and Perks:
- Explain the benefits and perks available to employees, including insurance, paid time off, and retirement plans
- Outline the eligibility requirements for each benefit and perk
- Explain the process for enrolling in benefits and updating coverage
- Time and Attendance:
- Explain the company’s time and attendance policies and procedures
- Outline the expectations for punctuality and attendance
- Describe the process for recording and reporting absences and tardiness
- Safety and Health:
- Explain the company’s safety and health policies and procedures
- Outline the expectations for employee behavior and conduct in the workplace
- Describe the process for reporting accidents and incidents
- Information Security:
- Explain the company’s information security policies and procedures
- Outline the expectations for employee behavior and conduct related to information security
- Describe the process for reporting security incidents and breaches
- Data Privacy:
- Explain the company’s data privacy policies and procedures
- Outline the expectations for employee behavior and conduct related to data privacy
- Describe the process for reporting privacy incidents and breaches
- Use of Technology and Equipment:
- Explain the company’s policies and procedures for using technology and equipment
- Outline the expectations for employee behavior and conduct related to the use of technology and equipment
- Describe the process for reporting incidents involving technology and equipment
- Employee Conduct and Discipline:
- Explain the company’s policies and procedures for employee conduct and discipline
- Outline the expectations for employee behavior and conduct
- Describe the process for addressing and resolving incidents of misconduct
- Conclusion:
- Summarize the key policies and procedures covered in the handbook
- Provide contact information for HR and other key stakeholders
- Explain the process for updating and revising the handbook
Here is a sample disaster recovery plan outline:
- Introduction:
- Brief overview of the disaster recovery plan
- Purpose and scope of the plan
- Description of the disaster recovery team and their roles and responsibilities
- Business Impact Analysis:
- Identification of critical business processes and systems
- Assessment of the potential impact of a disaster on these processes and systems
- Prioritization of recovery efforts based on criticality and impact
- Disaster Scenarios:
- Description of the various types of disasters that could occur
- Identification of the triggers that would initiate the disaster recovery plan
- Definition of the scope and extent of each disaster scenario
- Recovery Strategies:
- Identification of alternate processing sites and resources
- Development of data backup and recovery procedures
- Development of procedures for restoring critical systems and processes
- Identification of hardware, software, and communications requirements
- Communications Plan:
- Definition of the roles and responsibilities of the disaster recovery team and other stakeholders
- Identification of key internal and external contacts
- Development of a plan for communicating with employees, customers, partners, and regulatory agencies
- Testing and Maintenance:
- Description of the disaster recovery plan testing and maintenance procedures
- Schedule for testing and maintaining the disaster recovery plan
- Identification of the personnel responsible for conducting the tests and maintenance activities
- Conclusion:
- Summary of the key elements of the disaster recovery plan
- Statement of commitment to the plan and its implementation
- Information on the process for updating and revising the plan as needed
Maintaining SOC 2 Certification
Obtaining SOC 2 certification is not a one-time event, it requires ongoing effort to maintain. Software companies need to ensure that their controls and procedures are continuously updated to meet the ever-evolving security threats and to adhere to the standards. Organizations need to conduct regular internal and external audits to ensure that their controls are still effective, and that they are meeting the SOC 2 standards. Additionally, in order to maintain the certification, organizations must undergo an annual audit by a third-party auditor to ensure that they are still in compliance with the SOC 2 standards. This annual review is essential in order to maintain the integrity of the certification, and to ensure that customer data remains secure.
Helpful Resources
- AICPA (American Institute of Certified Public Accountants) SOC 2 webpage:
- SOC 2 Trust Services Criteria:
- ISACA (Information Systems Audit and Control Association) SOC 2 resources:
- SOC 2 FAQs by the SSAE 18 Auditing Standards Board:
- Wikipedia SOC 2: https://en.wikipedia.org/wiki/System_and_Organization_Controls
AWS has a nice getting started video that goes over the advantages of being on AWS to get SOC 2 certification.
Need help? Contact us!
What do auditors look for?
In my 10+ years of doing this, I’ve found that SOC 2 auditors look for evidence that a company has implemented and follows strict information security controls and processes to protect sensitive data. This includes examining policies, procedures, and technical systems related to security, availability, processing integrity, confidentiality, and privacy. The purpose of the SOC 2 audit is to provide assurance to clients, customers, and regulators that the company has the necessary controls in place to secure their data. Following these controls and documenting processes is critical because it demonstrates the company’s commitment to protecting sensitive information, builds trust with stakeholders, and can help prevent data breaches, which can have significant financial and reputational consequences.
Auditors typically ask for screenshots and number them according to the questions they present each year.
Some examples:
- If you state in your policy that your servers are patched at least every quarter than you will be required to show evidence that those servers were in fact patched.
- If your company password policy says it requires MFA, strong passwords, and special characters than you will be required to show all evidence for all users comply.
- If your company has an SDLC then evidence will be required that all your software teams follow this.
Good luck!
One response to “SOC 2 Certification for Data Security Excellence”
Great post! Would it be possible to get a better example of a DR plan and the proof that SOC type 2 required as evidence? Our company is in the process of establishing the documents needed to start the soc type 2 process.
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